Offence and penalties

(1) It shall be an offence under this Act, if a Co- operative Society,- (a)fails to give a notice, send a return or document, or fails to do or allows to be done any act which a Co-operative Society is by . Inserted along with the marginal heading by Act No.29 of 1998, Section 2. this Act or under its bye-laws required to give, send, do or allow to be done; (b)wilfully neglects or refuses to do an act or to furnish information required for the purposes of this Act or does an act forbidden by this Act, or the bye-laws; or (c)makes a return, or wilfully furnishes information, in any respect false or insufficient. (2) It shall be an offence under this Act, if any person or Co-operative Society contravenes the provisions of a Cooperative Society. (3) An offence by a Co-operative Society shall be deemed to have been also committed by each office-bearer of the Co-operative Society bound by the bye-laws thereof to fulfil the duties whereof the offence is a breach, or if there is no such office-bearer then by each of the Director, unless the office-bearer or Director proves to have attempted to prevent the commission of the offence. (4) An offence under this section shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to ten thousand rupees or with both: Provided that where a person is guilty of misappropriation, fraud, breach of trust, cheating or any other act involving moral turpitude, resulting in a loss to the Co-operative Society, he shall be punishable under the relevant provisions of the Indian Penal Code, 1860.(Central Act 45 of 1860).

this Act or under its bye-laws required to give, send, do or allow to be done; (b)wilfully neglects or refuses to do an act or to furnish information required for the purposes of this Act or does an act forbidden by this Act, or the bye-laws; or (c)makes a return, or wilfully furnishes information, in any respect false or insufficient.

1. (2) It shall be an offence under this Act, if any person or Co-operative Society contravenes the provisions of a Cooperative Society.
2. (3) An offence by a Co-operative Society shall be deemed to have been also committed by each office-bearer of the Co-operative Society bound by the bye-laws thereof to fulfil the duties whereof the offence is a breach, or if there is no such office-bearer then by each of the Director, unless the office-bearer or Director proves to have attempted to prevent the commission of the offence.
3. (4) An offence under this section shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to ten thousand rupees or with both: Provided that where a person is guilty of misappropriation, fraud, breach of trust, cheating or any other act involving moral turpitude, resulting in a loss to the Co-operative Society, he shall be punishable under the relevant provisions of the Indian Penal Code, 1860.(Central Act 45 of 1860).